CBIZ (CBZ) Q1 2026 earnings summary

Executive summary

• Achieved year-over-year growth in revenue, profitability, net income, and free cash flow for Q1 2026, with organic growth improving sequentially and integration milestones advancing.

• AI and automation initiatives advanced, with measurable productivity gains and deployment across 200 workflows, supporting scalable future growth.

• Strategic priorities include talent acquisition, brand investment, industry verticals, and AI-driven efficiency, positioning as a middle-market leader.

• Share repurchases totaled ~$63M YTD through April, reducing net leverage by ~0.5x year-over-year.

• Integration efforts resulted in unified teams, systems, and culture, with improved organic growth and cost synergy estimates exceeding $50M by 2027.

Financial highlights

• Q1 2026 consolidated revenue rose 1.3% year-over-year to $849M; organic revenue growth was 1%.

• Adjusted EBITDA increased 1.5% to $244M, with margin up 10bps to 28.8%.

• Adjusted diluted EPS grew 7.3% to $2.50; net income rose 31.6% to $162M.

• Free cash flow improved by $64M year-over-year, aided by a $57.2M–$58M one-time acquisition-related gain.

• Net leverage decreased to 3.4x from 3.9x year-over-year.

Outlook and guidance

• 2026 revenue guidance reaffirmed at $2.8B–$2.9B, representing 2%–5% year-over-year growth.

• Adjusted EBITDA guidance raised to $465M–$475M; adjusted diluted EPS outlook increased to $4.00–$4.10.

• Free cash flow expected at $270M–$290M, with ~60% conversion at the midpoint.

• Long-term goals include 8–10% revenue growth and 1.5x–2x earnings growth.

• Expect organic growth to accelerate in the second half as integration impacts abate.